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May 30, 2012

All about section 80U exemption of income tax

Income tax law gives a special deduction to the persons who suffer from some kind of disability. This comes under section 80U of income tax act in which the persons who are suffering from some kind of or total disability has the special relief in income tax act.

As per section (1) of section 2 of persons with disability the term ‘disability’ means in regard of section 80U of income tax act means:

1- Blindness

2- Low vision

3- Hearing impairment

4- Leprosy

5- Moving disability

6- Mental retardation

7- Mental illness

8- autism

9- cerebral palsy

10- multiple disability(more than 1 disability in this form)

The persons who are suffering with one disability can claim this deduction of income tax. The deduction amount is also vary to each like the person who is suffering from one disability can get the maximum deduction of 50000 whereas multiple disability persons can claim a deduction of 100000 of his/her gross income.

Before claiming the deduction of section 80U of income tax act, one needs to get the certificates from doctors about their disability. 40% disable person can get 50000 rupees deduction whereas 80% disable person can get the deduction of 100000. the doctor issue certificates for disability and one need not to enclose these certificates to any income tax returns etc. but it is advisable and must( from the income tax point of view) to get the certificates before claiming any kind of deduction under the section 80U of income tax act.

As per income tax rules in section 80U of income tax act, the doctor who issue a disability certificate should be a M.D (Doctor of Medicine) in the case of neurology cases and if the medical advisor is a private doctor whereas in the case of government medical chief medical or civil surgeon will issue these kind of certificates which are valid in case of income tax act under section 80U.

There are some prescribed forms for each disease and disability and one need to have the forms fill as well as get the certificates for claiming the deduction of income tax under section 80U.